The original documents are located in Box 135, folder “July 26, 1974 - Speech, Domestic Council Seminar, Chicago, IL” of the Gerald R. Ford Vice Presidential Papers at the

Gerald R. Ford Presidential Library.

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REMARKS BY VICE PRESIDENT GERALD R. FORD DOMESTIC COUNCIL SEMINAR

CHICAGO, ILLINOIS JULY 26, 1974

FOR RELEASE A1_10:00 AM, FRIDAY CDT

I am very pleased to participate in this very important and timely

White House conference on the economy.

Last night we heard the President address the first conference in this

series. He set forth a reasoned battle plan for subduing Public Enemy No. 1

inflation.

The President spoke at a time when he is the subject of proceedings in

Washington of which we are all aware. Reasonable men may differ on points at issue.

But reasonable men may also transcend the immediate controversy involving the

President to join in confronting inflation.

The fight against inflation must continue as if there were no impeachment

proceedings. Leaders of this Administration have a responsibility to govern --

especially in efforts to control inflation -- regardless of the seemingly endless

impeachment controversy. Until this matter is resolved one way or the other, it

is essential that we press the fight against inflation as vigorously as if no such

process were under way.

Just as at the meetings in California last night and here today,

Administration leaders must continue going among the people in response to

inflation -- to communicate, to wage an anti-inflationary campaign on all fronts,

and to provide real leadership.

We cannot afford to let the inflation enemy infiltrate while our

attention is diverted and we as Americans are fighting among ourselves.

I am sure that all the victims of inflation --- business and labor, employed

and unemployed, urban and rural, Democrats and Republicans --- can agree to rally

against any further erosion of the buying power of the American dollar. The eagle

on the dollar is screaming. We must unify in responding to that cry.

Let me tell you today what this Administration asks you to support. I

am ref erring specifically to the responsibilities of the Government in combatihg

inflation. Our first responsibility is to curb spending.

Digitized from Box 135 of the Gerald R. Ford Vice Presidential Papers at the Gerald R. Ford Presidential Library

Page 2

Government must provide leadership by example. It serves no purpose

to lecture the harrassed public, especially the low and middle income people who

have been the main losers from inflation.

Let Washington restrain spending, if others are to follow.

Let Washington show the way to increased production.

Let there be a real partnership of the people and the Government in

rallying to protect the dollar.

Washington cannot credibly ask others to show restraint unless Government

proves its own commitment by performance. Accordingly, I concur with the need to

veto "budget-busting" legislation. We will need political guts to say "no"

to programs that are marginally desirable but not essential. Such programs will

have to be deferred. We simply cannot afford optional luxuries while striving

to beat inflation.

The Federal Budget proposed for Fiscal Year 1975 calls for expenditures

of $305 billion. There are already indications that this total is being inflated

by actual or potential Congressional action to as much as $312 billion. As the

President asserted last night, we cannot tolerate this increase. It would feed the

already overheated fires of inflation.

We must prevent such budget overruns from taking place.

Actually we must also resolve to reduce expenditures below the

originally proposed $305 billion level. We cannot.do this without the active

support of the public, of the business community, of the labor organizations, and

of the Congress.

There has been much talk and speculation that a so-called veto-proof

Congress may be elected next November. As a Member of the Congress for a quarter­

century, I am fully aware of the inflationary damage a veto-proof Congress could

inflict.

What we need in November is not a veto-proof Congress but an inflation­

proof Congress. We need the check and balance of an effective Presidential veto

to control excessive spending.

We cannot afford to escalate inflationary pressures by electing a veto­

proof Congress. I am speaking today of pocketbooks more than politics. This is

not a purely partisan matter. An inflation-proof Congress will require election

of Members of either party who will not spend us into greater inflation. I

naturally tend to believe that such candidates will be found more often on the

Republican ticket.

Page 3

If we are able to control expenditures we will be in a much better

position to propose and achieve a budget next year that will not only be in

balance but maybe even in surplus. Nothing could be more important in the war

against inflation than to achieve a surplus in next year's government operations.

The importance of reduced expenditures cannot be overestimated. Reduced

expenditures mean reduced government borrowing, reduced interest rates, and help

for the Federal Reserve in its efforts to slow the inflationary expansion of money

and credit.

These are the essentials. Without progress on these essentials, victory

in the fight against inflation is beyond our grasp. Even as we persevere on

this course we must explore other actions to help relieve inequities.

Certain industries such as the public utilities, housing, financial

institutions, and others have been especially hard hit. There are remedial

suggestions that may have merit and deserve intensive study.

Some suffer more than others in the war against inflation. Certain

groups --- older Americans, the unemployed, persons on fixed income, may require

special help within budgetary limits.

I have addressed myself briefly to a tough problem requiring tough

actions. Let us never forget that we are blessed as a nation with the most

productive economy the world has ever know. We have the courage, the ability,

and the resources. Let us return to fundamentals. And we will show the Free World

the way to end inflation.

If If fl If ff

REMARKS' TICE PRESIDENT GERAID R. FORD

D~Es ,1 c Co0Nc.rL S'L lt A/~ C /JI c /kf-o t' I LL I J./0 / S

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I am very pleased to participate in this very irrportant and tinely White ~ House conference on the econany.

Last night we heard the President address the first conference in this

series. He set forth a reasoned battle plan for subduing Public Enaey

No. 1 --- inflation •

a n anaMd£££2$wirit A

The President spoke at tilre when he isl e the subject of A

proceedings in Washington of which we are all aware • Reasonable IIE1l

J' may differ on points ~ issue • But reasonable IIE1l may also transcend

the innediate controversy involving the President to join in confronting

inflation •

'Ihe fight against inflation must continue as if there were no irrpeachlrent

proceedings. Leaders of this Administration have a responsibility .-t;s. govenrlllaJ --- especially in efforts to control inflation --regardless of 711 c

C..ON T°l'l.O li'£RS'}I: seemingly endless impeachrcent • Until this matter is resolved

one way or the other , it is essential that we press ti[; fight against

inflation as vigorously as if no such process were under way •

•••••••••• .};t as at the ~ California last

night and here today , Administration leaders must continue going anong the

people in response to inflation.,-to ccmmmicate , to wage an anti-inflationary

canpaign on all fronts , and to provide real leadership •

We cannot afford to let the nz § ¥ inflation enaey infiltrate

while ~ our attention is diverted and '~~g anong ourselves •

I am sure that all the victims of inflation --- business and labor ,

E!lployed and unenployed , urban and rural , Derrocrats and Republicans --- can agree

..

;

- 2 -

to rally against any further erosion of the buying pc:Mer of the American

dollar The eagle on the dollar is screaming • ~ rmJSt unify in

resporxling to that cr:y •

I.et ne tell you today what this Administration asks you to support •

I am referring specifically to the responsibilities of the Govermrent in

canbatting inflation • OUr first responsibility is to curb sperrling •

Govermrent nust provide leadership by exanple • It serves no purpose

to lecture the harrassed public, especially the lOW' and middle incare people who have been

the main losers fran :inflation •

I.et Washington restrain spending, if others are to follow •

I.et washington show the way to increased production •

I.et there be a real partnership of the people and the c/ament

in rallying to protect the dollar •

washington cannot credibly ask others to show restraint unless Goverrment

proves its CMn canni:tmant by perfonnance • Accordingly, I concur with the need

to veto "blrlge~~ legislation. We will need pcblitical guts to say "no"

to programs tha~~inally desirabl¥ but not essential • Such programs will

have to be deferred. We sinply cannot afford optiona1- luxuries while striving

to beat inflation •

~proposed for Fiscal Year 1975 calls for expenditures of

$305 billion • There are already indications that this total is being in

to as rruch as $312 billion • As the President asserted last night , we

cannot tolerate this increase. It would feed the already overheated fires

of inflation •

. .

- 3 -

A '-f'"w~1J::s~ prevent such budget• overruns fran taking place •

~~must also resolve to reduce expenditures below the originally

proposed $305 ~llion level We cannot do this without the active

support of the public , of the business carmunity , of the labor organizations,

aOO of the Congress • ~ Af ~ :i; Oa~ere has been nuch talk · a so-called veto-proof Congress

·~ ~vemrer. As a M:!mber of the Congress for a quarter-century, I am

fully aware of the inflationary damage a veto-proof Congress could inflict .

What we need in November is not a veto-proof Congress but an

inflation-proof Congress . We~ the check and balance of an effective

Presidential veto to control exces~ • We cannot afford to escalate inflationary pressures by electing a veto-proof

Congress. I am speaking today of pocketl:x:>oks nore than politics • 'Ibis is

not a purely partisan matter . An inflation-proof Congress will require election of _..

M:!mbers of either party who will not spend us into greater inflation . I candidates

naturally tend to believe that suc~ll be found nnre often on the

Republican ticket •

If we are abl to control expenditures we will be ~-nuch better

position to pro se a .udget next year ~ will • not onl~ balance but maybe even in the war a ainst inflation

in surplus . Nothing could be nnre importan to achieve a surpl¥S

in next year's governnent operations .

The inportance of reduced expenditures cannot be overestimated • Reduced expend:

Ji=es maan reduced CjO\lerllllelt barroiring , reduced interest rates, a00 help + the Federal Reserve in its efforts to slow the inflationary expansion of nnney and

credit •

. .

I - 4 -

. ~~~~..I

TBese are the essentials • Without progress ii ' : tW?&F]CEQRXORE8£

victory in the fight against inflation is beyond our grasp • Even as we -persevere on this course we ImlSt ~ explore other actions --to help ~ relieve inequities •

Certain industries such as the public utilities, housing, financial

institutions , and others have been especially hard hit • '!here are N

raoodial suggestions that may have mer:G. and deserve i~ive sttrly •

il~s frxq:u.~~1c;s r,:r.~ ~~:-~ against inf~l~n • Certain ,Tiie VN6MP~t>Y6}) 1 ~ ~~"'

groups -- °J:::;, l\mericansrsans CD fi.Jced incooE ~:ii ' e ;,......, «..____ bzackets ad FA require special help ~' T# ,N 3 V l> GFrAA)' LIMIT ..s'.

I have addressed reyself briefly to a tough problen requiring tough actions.

Iet us never forget that we are blessed as a nation with the nnst productive

econarry the world has ever known • -----=--We have the courage °' LAA 1 1 'Laa the ~

ability/ arrl~ Iet us return t o fundanentals • And we will show

the Free ~rld the way to end inflation •

. .